Replies to post #224830 on ERHC Energy Inc (ERHE)

[TOB]

TOB, his mocking of this nigerian lottery scam is entirely justified.

management just diluted for no apparent reason and even some of the better spinners on this board seem at a loss to put much of a positive take on this ridiculous move.

I agree especially with the person who says erhe has now become a trader's stock and no longer an investment.

If i was currently to hold above 100K shares i would start to trade for pennies and nickel profits and see if i couldn't start to make back the massive losses people here are sure to have on paper.

I do see the point about dilution, but what of raising an additional 10%/2,000,000 in working capital and the implied commitment of a bullish Institutional Investor? Management didn't give away the shares for free, they took in money.

Today I snapped up another tranche of shares at 0.24, just 2 cents above this alleged give-away. In this light, it wasn't such a great deal for the Institutional Investor, to commit $2mil and save only 2 cents, perhaps not even should ERHE trade lower. The real value appears to be in the options they gained.

I endorse trading of course, my own style is to keep trying to reduce my cost basis. But this is tricky, and could easily do worse than just buying and holding as it is easy to miss the bigger moves.

The fundamental stress I see for some on this board is position sizing. This is a highly speculative stock, it could multiply in value or it could go to zero. Positions should be sized accordingly.